Learning journal unit 4

What purpose do non-compete agreements serve?

Non-compete agreement helps to safeguard trade secrets, competitive strategies, and confidential
information of a business. Just in case the employees chooses to make a decision of leaving the
company, this agreement prohibit the employees from using the knowledge of their previous
company to further the interests of a competitor or launch a competing business in conflict with
their previous working station.
Explain the conflict of interests between employee and employer when it comes to non-
compete agreements. How do you reconcile this conflict?
In this case, conflict of interest comes in when the employers choose to protect their business
interest while the employee feels like they need to maintain their freedom of work and that they
can freely choose whom they work with even if it means running the same business as their
employers. Having that in mind, there is a need to reconcile these conflicts through the Non-
compete agreement. The agreement should always aim to be reasonable in scope, geographical
and duration. As much as it is to protect the company’s interest, it should not have limitation to
employee’s career prospects.
Suppose an executive chef or vice president of marketing or operations at Jimmy John’s or
any large sandwich franchise leaves the firm with knowledge of trade secrets and
competitive strategies. Should he or she be compelled to wait a negotiated period of time
before working for a competitor? Why or why not?
For the stated case scenario, just incase an executive chef or a vice president leaves a large
sandwich franchise with knowledge of trade secrets, they are bound to allow some period to pass
before they decide to start their own business of the same interest. This is because the business
secretes the carry can be transferred immediately to the new business and that may be a
drawback to the previous employer in a harmful way.
What is fair to all parties when high-level managers possess unique, sensitive information
about their former employer?
Just in case high level managers possess unique and sensitive information about their former
employer, it will be fair if these managers will not share this vital information outside the
company to a point of disadvantaging their former employer. On the other hand, as much as they
are not allowed to share this information, they should not be restricted on what they want to
become in terms of career. This is supported by the idea that everyone would want to grow
career wise and we work in various organizations so that we can gain knowledge and experience
of thriving through (Byars and Stanberry, 2018).
Objectively analyze differing perspectives and value systems and relate them to your own
beliefs . Describe at least two for and against arguments. Clearly state at least two ethical
considerations from different perspectives.
The two ethical considerations for non-compete agreements is to prevent the deteriorations of the
company’s competitive advantage to employees who carry the top most secrets of the company.
Also, it protects the company in investment in terms of training their employees and the
development of the company at large without fear of receiving competition from immediate
employees.
The other side of the story is the ethical considerations that are against the non-compete
agreement. First, the agreement restricts the freedom that the employees may have at work place.
Also, it limits the chances of innovation and limits competition in the business market as
employees may not be allowed to apply the skills they have once they leave the company.
Name a major ethical theory or theories and present the summary of said theory.
In this context, I would agree with the utilitarianism theory. It implies that the best action that
can be taken is the one that produces pleasure or happiness to all people (Rueter, 2023). In this
case, the non compete agreement should aim at making both the employer and the employee
happy without any conflict of interest.
Summary
In conclusion, we have seen that a non-compete agreement protects trade secrets, competitive
strategies, and confidential information of a business. It also prevents employees from using
their knowledge to further competitors' interests or launch competing businesses. However, it
also addresses conflicts of interest between employers and employees. The agreement should be
reasonable in scope, geographical, and duration, while maintaining employees' freedom of choice
and career prospects. It also addresses ethical considerations such as restricting employee
freedom and innovation.

References

Rueter, S. (2023). Ethical Theories: Virtue Ethics, Utilitarianism, and Deontology.

[online] philosophos.org. Available at: https://www.philosophos.org/ethical-
theories-virtue-ethics-utilitarianism-deontology.

‌Byars, S.M. and Stanberry, K. (2018). 7.1 Loyalty to the Company - Business Ethics |
OpenStax. [online] openstax.org. Available at: https://openstax.org/books/business-
ethics/pages/7-1-loyalty-to-the-company.